pip
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Post by pip on May 17, 2016 15:43:40 GMT
It's a real disappointment that investors are having to pay extra tax as a result of this delay. Investors have waited now almost two years for this.
It would be good if the fca could provide an update, is there something they are worried about that is causing the delay?
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Post by westonkevRS on May 17, 2016 17:29:04 GMT
To play FCA devils advocate, it isn't their fault George Osbourne launch a new ISA type. The FCA process is independent of the IF ISA, and they need to do their job irrespective of any parallel but technically unrelated deadlines.
There was even talk that they would try and provide authorisation at the same time to the major players to make things fair competitively. But this won't happen, it isn't their mandate or concern. Authorisation will be platform by platform when the FCA are ready.
In terms if timescales for RateSetter the lack of communication is because we are in the dark. It was originally hoped it was just weeks away, and we could make a splash. But as time goes on expectations are being better managed and realistic.
Therefore RateSetter and especially myself can only speculate. As a gambling man I'm betting on late July 2016. But this is pure guesswork and speculation, please don't base any investment decision on this.
Kevin.
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Post by lb on May 17, 2016 18:40:28 GMT
westonkevRS do you think the Lending Club issues will increase the delays on this?
also do you think some platforms will be authorised before others? If FC or Z were authorised but not RS it wouldn't seem right ... where will they draw the line?
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Post by westonkevRS on May 17, 2016 19:26:56 GMT
westonkevRS do you think the Lending Club issues will increase the delays on this?
also do you think some platforms will be authorised before others? If FC or Z were authorised but not RS it wouldn't seem right ... where will they draw the line?
RateSetter has proactively communicated to the FCA to explain why the Lending Club issues are not relevant to RateSetter. They haven't asked us anything, yet, which could be good or bad. That said, the reasons it doesn't impact RateSetter, in the we have always remained predominantly P2P and don't package loans into funds/debt packages, are not true of the other large platforms. But I cannot speak for them. As I understand it, the regulator has no interest in who is approved first or the subsequent interpretation of this by the market. They are working case by case in parallel and will approve when each platform is deemed satisfactory. Kevin.
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Post by newlender on May 18, 2016 3:05:59 GMT
The latest email from RS details ways to prepare for the new ISA and is quite informative. It suggests opening a conventional cash ISA and then transferring the funds when the RS ISA opens. Will such a flood of money not depress rates at the outset? It says that transferring will be a one click process for funds already invested in RS - presumably for those accepting MR. (I don't remember signing up for an 'Everyday Account' mentioned in the email; what other types are there?) I need to decide between RS and Z for my ISA but the temptation will be to go with whichever goes live first and I suspect I'm not alone. Both platforms perform well for me and seem equally secure, so the race is on. Interesting times - a case of caveat venditor if ever there was one as I suspect there's a lot of cash out there waiting for a home and the platforms need to get their first offers off to a flying start with total transparency and ease of opening wherever the funds come from.
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jonah
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Post by jonah on May 18, 2016 4:59:08 GMT
Personally I'm now hoping zopa gets its ISA out ahead of RS by a fortnight or month... As I suspect that the first one will get a huge wall of cash and therefore a larger drop in rates, so I can get a better return from RS by being slightly 'late'
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jlend
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Post by jlend on May 18, 2016 6:18:57 GMT
To play FCA devils advocate, it isn't their fault George Osbourne launch a new ISA type. The FCA process is independent of the IF ISA, and they need to do their job irrespective of any parallel but technically unrelated deadlines. There was even talk that they would try and provide authorisation at the same time to the major players to make things fair competitively. But this won't happen, it isn't their mandate or concern. Authorisation will be platform by platform when the FCA are ready. In terms if timescales for RateSetter the lack of communication is because we are in the dark. It was originally hoped it was just weeks away, and we could make a splash. But as time goes on expectations are being better managed and realistic. Therefore RateSetter and especially myself can only speculate. As a gambling man I'm betting on late July 2016. But this is pure guesswork and speculation, please don't base any investment decision on this. Kevin. In many ways I am reassured that the authorisation has not gone through quickly. Full authorisation is very important especially with a new industry like this. A few extra months now feels like time we'll spent to get it right on behalf of lenders.
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Post by lb on May 18, 2016 8:00:50 GMT
westonkevRS do you think the Lending Club issues will increase the delays on this?
also do you think some platforms will be authorised before others? If FC or Z were authorised but not RS it wouldn't seem right ... where will they draw the line?
RateSetter has proactively communicated to the FCA to explain why the Lending Club issues are not relevant to RateSetter. They haven't asked us anything, yet, which could be good or bad. That said, the reasons it doesn't impact RateSetter, in the we have always remained predominantly P2P and don't package loans into funds/debt packages, are not true of the other large platforms. But I cannot speak for them. As I understand it, the regulator has no interest in who is approved first or the subsequent interpretation of this by the market. They are working case by case in parallel and will approve when each platform is deemed satisfactory.
Kevin. If this was true then the bigger the platform the longer authorisation must necessarily take. The FCA surely have to take more time assessing RS (and its 50k investors and £500m loanbook) then smaller platforms like SS/MT/Landbay etc so RS should therefore be one of the last to get authorised ...
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Post by yorkman on May 18, 2016 8:48:36 GMT
RateSetter has proactively communicated to the FCA to explain why the Lending Club issues are not relevant to RateSetter. They haven't asked us anything, yet, which could be good or bad. That said, the reasons it doesn't impact RateSetter, in the we have always remained predominantly P2P and don't package loans into funds/debt packages, are not true of the other large platforms. But I cannot speak for them. As I understand it, the regulator has no interest in who is approved first or the subsequent interpretation of this by the market. They are working case by case in parallel and will approve when each platform is deemed satisfactory.
Kevin. If this was true then the bigger the platform the longer authorisation must necessarily take. The FCA surely have to take more time assessing RS (and its 50k investors and £500m loanbook) then smaller platforms like SS/MT/Landbay etc so RS should therefore be one of the last to get authorised ... That rather assumes that the begin assessment of all lenders at the same time and undertake assessments concurrently. This is probably unlikely.
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Post by propman on May 18, 2016 9:42:37 GMT
If this was true then the bigger the platform the longer authorisation must necessarily take. The FCA surely have to take more time assessing RS (and its 50k investors and £500m loanbook) then smaller platforms like SS/MT/Landbay etc so RS should therefore be one of the last to get authorised ... I would hope that the FCA would require similar standards for all. You would have hoped that RS as part of the P2PFA will have anticipated many of the requirements and had advance notice of their likely concerns as well as affording experienced support (internally or externally) to smooth the process and avoid misunderstandings. I would have also hoped that due to their size they will have a better documented system to enable themto provide the necessary responses and assurances that a start-up might struggle with.
I would expect that the big issue is whether anything unacceptable is uncovered that requires a change to their systems. The scale of RS might make implementing such a change harder due to legacy issues and less capacity to operate manual work arounds for any knock on issues. So I do see a strong likelihood that there will be a gap between authorisation dates unless a deliberate attempt is made to fast track the slower running processes. But I know many posters will have much more experience than I do on both system changes and regulatory procedures, both of which I have only been peripherally involved in.
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Post by misotu on Aug 3, 2016 11:16:33 GMT
Therefore RateSetter and especially myself can only speculate. As a gambling man I'm betting on late July 2016. But this is pure guesswork and speculation, please don't base any investment decision on this. Kevin. Well good thing you didn't actually place that bet! The silence on this is deafening from both RS & Zopa. Not your fault and I don't suppose you have anything concrete still. Based on how it's going (assuming you know any more than we do!), can you reassure us that there is every chance of something being available before the end of this tax year? I realise there are no guarantees but I'm keeping so much dosh in rolling and access just waiting for the IFISA to be announced by one of these two platforms, and the entire subject just seems to have dropped out of view. I know I have the option of taking an easy access ISA pro tem, but the rates are terrible so that would be a last-minute emergency move to use the allowance.
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Post by lb on Aug 3, 2016 11:23:25 GMT
From what I understand there is no chance of platforms not already authorised, becoming authorised. The FCA do not interpret any of the business models to fall within existing regulations. The FCA want feedback by 08 September on what needs to be changed - www.fca.org.uk/your-fca/documents/call-input-crowdfunding Once that is back they will go to the treasury to amend regulations accordingly. Then they MIGHT start authorising. So start of next tax year if we are lucky ...
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Post by dualinvestor on Aug 3, 2016 16:31:35 GMT
Therefore RateSetter and especially myself can only speculate. As a gambling man I'm betting on late July 2016. But this is pure guesswork and speculation, please don't base any investment decision on this. Kevin. Well good thing you didn't actually place that bet! The silence on this is deafening from both RS & Zopa. Not your fault and I don't suppose you have anything concrete still. Based on how it's going (assuming you know any more than we do!), can you reassure us that there is every chance of something being available before the end of this tax year? I realise there are no guarantees but I'm keeping so much dosh in rolling and access just waiting for the IFISA to be announced by one of these two platforms, and the entire subject just seems to have dropped out of view. I know I have the option of taking an easy access ISA pro tem, but the rates are terrible so that would be a last-minute emergency move to use the allowance. I woudn't place a bet on that if I were you. This is inextricably linked to the authorisation procedure and according to a thread on the general discussion board and above the FCA/Government's stance on that is not entirely clear.
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Post by westonkevRS on Aug 4, 2016 5:35:21 GMT
Therefore RateSetter and especially myself can only speculate. As a gambling man I'm betting on late July 2016. But this is pure guesswork and speculation, please don't base any investment decision on this. Kevin. Based on how it's going (assuming you know any more than we do!), can you reassure us that there is every chance of something being available before the end of this tax year? I realise there are no guarantees but I'm keeping so much dosh in rolling and access just waiting for the IFISA to be announced by one of these two platforms..... As the old saying goes, there are only two types of economic foecasters, those that cannot predict the future and those that don't know they cannot predict the future.... Or there are two outcomes - lucky or wrong. Lucky I'm not an economist. I'm a gambler so I'm always willing to have a punt. Obviously I was wrong with July '16, but much externally and politically has changed since then. So I'll have a second guess, and say October '16.But of course I don't know. Except that there is no fundamental stumbling block, there are some changes being made (as all the big platforms are), and when complete we fully expect authorisation to be given. Personally I don't work in Compliance and am not involved in the changes. But it's the FCA, they make the rules we just play the game... Kevin. EDIT: After taking views in the office, although the consultation is technically separate from the authorisation process it's bound to have an impact. If the consultation visits and feedback highlight anything, then it could cause delays. As a result I might have to delay my "guess" to Q1 2017, and who knows if ISA approval will follow....
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pikestaff
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Post by pikestaff on Aug 4, 2016 6:47:33 GMT
From what I understand there is no chance of platforms not already authorised, becoming authorised. The FCA do not interpret any of the business models to fall within existing regulations. The FCA want feedback by 08 September on what needs to be changed - www.fca.org.uk/your-fca/documents/call-input-crowdfunding Once that is back they will go to the treasury to amend regulations accordingly. Then they MIGHT start authorising. So start of next tax year if we are lucky ... That link did not work for me. In case others have the same problem try this one to the press notice: www.fca.org.uk/news/fca-launches-call-for-input-on-crowdfunding-rules- and follow the links from there. I'm still expecting authorisations before the end of the tax year. However, this was one of Osborne's babies and the new government has a lot of other work to do. Further delay is not impossible. Edit: It seems to me that this is of general interest so I've started a new thread here p2pindependentforum.com/post/131765/thread
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